The use of check writing, cashing, or honoring has grown ever so common. The continuous increase in the transmission of information has lowered the need to constantly carry cash and has, in effect, heightened the use of writing and cashing checks when cash is needed. Also, check cashing provides an easy way for a check writer to obtain cash without visiting a bank or an electronic teller.
Likewise, check and check writer analysis for check approval or denial have increased in number and in types used. Typically, at a point of transaction in which a check is written, a merchant or an entity paid by the merchant performs a check and check writer analysis in order to determine whether to accept or honor the check. Depending on parameters and calculations which are to be used, there are several ways of performing such analysis.
For example, a number of parameters specific to the transaction are processed and incorporated within an analysis program. The parameters used may include, e.g., time of day, date, check number, check amount, credit rating of the check writer, etc. Each available parameter specific to the transaction is given a score reflecting the risk level of the check and check writer based on pre-stored historical information of the check writer. Each parameter may be, and typically is, weighted in accordance with its relative importance within the analysis. In this example, the scores for each parameter are added to provide a sum of the scores. The sum is then classified within a predetermined scale of scores. Depending on the reference used, the sum may or may not fall within an approval range. If it does, then the check is approved, and if not, then the check is denied. The check writer is notified of the result.
Additionally, analysis may vary depending on, for example, the type of transaction or the point of transaction. That is, the analysis may be configured to have a lower standard in one type of transaction and a higher standard in another type of transaction, based on historical or researched information.
Current systems implemented to perform check and check writer approval are adequate; however, current systems may be improved. One current system generally includes an analysis which simply approves or denies a check written by a check writer. Generally, the check writer would provide a written check to be cashed to a teller or merchant whom would type in or swipe the check and the check writer's information, e.g., driver's license, through a machine. The check information and the check writer's information is transmitted to a host database computer to perform a risk analysis. Several parameters may be analyzed, including, for example, time of day, date, check number, amount to be cashed, credit rating of the check writer, etc. Based on a predetermined rating format, the check is either approved or denied.
However, this system only provides an approval or denial of the check and is not configured to provide more information to the check writer. The check writer is provided with no information to gauge how much, if any, a merchant would be willing to cash. Thus, in situations where the check writer has been denied to cash a check for a particular amount, in many cases the merchant would have approved the check had the particular amount been written for less than what was initially requested. Likewise, in situations where the check writer has been approved to cash a check for a particular amount, in many cases the merchant would have approved the check for an amount greater than what had been requested.
Because the check writer is unaware of how much, if any, a merchant would be willing to cash, time is unnecessarily consumed. In many situations, especially in entertainment atmospheres, such as casinos, a check writer may cash a check for an amount less than what he would liked to have had and less than what the merchant would have approved. As a result, the check writer frequents the cashiers desk more often than if he had initially cashed his check at a higher amount. Alternatively, the check writer would thereafter leave the casino to attempt to cash a check elsewhere, e.g., another casino, resulting in loss of entertainment business at the former casino.
Another current system being used generally includes an analysis which approves a requested amount by a check writer, approves the check writer for a lesser amount, or declines the transaction. Information is provided to a host database computer similar to the system described above. The parameters used in the system described above may also be the parameters used in this system. A risk analysis is then performed by the host database computer based on the parameters. In addition to simply approving or denying the check, the system provides the check writer with an amount that the merchant would be willing to approve for check cashing. Thus, in situations where the check writer is denied, the check writer would then know how much he could check-cash.
However, this system typically only provides a maximum to be immediately cashed and is not configured to provide a time period within which a check may be cashed for the amount. The check writer is kept unaware of any additional amount he could check-cash at a later time, e.g., the next day. In fact, the current system does not determine a time period within which the check writer may cash checks. Generally, the system performs a separate risk analysis for each check cashing incident. As a result, time is unnecessarily consumed, due to the cumulative amount of repeated risk analysis performed during a short time period. This is undesirable.
Additionally, both systems mentioned above allow the check writer to be denied in front of others while they wait, potentially resulting in an undesirable embarrassment. If a system is configured to provide the check writer with a check cashing limit over a period of time, in advance, such embarrassments could be avoided.
Thus, what is needed is an improvement in a system which provides check writers a check cashing limit over a time period.
What is also needed is an improvement in a system which saves time in the process of risk analysis of the check writer.
What is also needed is an improvement in a system which reduces check writer embarrassment and increases spending.